I&M Group’s Rwanda arm secures $29 million Proparco MSME partnership

I&M Bank Rwanda, a unit of I&M Group founded by Kenyan businessman Suresh Bhagwanji Shah, has signed a partnership with Proparco to deploy €25 million ($29.06 million) in guarantees to expand MSME financing in Rwanda, targeting women- and youth-led businesses, startups and high-impact sectors.

The agreement, formalized through a Memorandum of Understanding during the Africa CEO Forum 2026 in Kigali from May 13 to 15, will leverage the IMPACT+ guarantee mechanism co-structured with the European Union under the EFSD+ instrument. The initiative is designed to ease collateral constraints that continue to limit access to credit for Rwanda’s growing MSME sector.

Proparco targets MSME expansion in Rwanda

Proparco will provide two portfolio guarantees totaling €25 million ($29.06 million) to support I&M Bank Rwanda’s MSME lending. One will expand its SME loan book, while the other will channel financing into agriculture, healthcare, education and green sectors. 

The facility targets women entrepreneurs, youth-led businesses and startups, key drivers of Rwanda’s economic transformation and job creation. I&M Bank Rwanda, one of the country’s leading lenders, is increasingly prioritizing MSME financing as a core growth driver.

Focus on collateral access and financial inclusion

The partnership is expected to address one of the biggest barriers facing small businesses across Africa: limited access to collateral-backed financing. By reducing lending risks through guarantees, the initiative aims to enable entrepreneurs with limited assets but strong growth potential to access credit for expansion, innovation and scaling operations.

Benjamin Mutimura, CEO of I&M Bank Rwanda, said the agreement strengthens the bank’s commitment to supporting Rwanda’s entrepreneurs while easing long-standing financing constraints. “By leveraging the IMPACT+ facility, we are strengthening our support to the SME segment and addressing long-standing barriers such as collateral requirements,” Mutimura said.

IMPACT+ program expands development finance reach

The IMPACT+ program supports financial institutions expanding lending to underserved businesses across emerging markets.

It aims to strengthen local value chains, promote private sector investment, and support low-carbon economic growth. As Rwanda deepens its focus on entrepreneurship-led growth, access to MSME financing remains critical to economic expansion and job creation.

Suresh Bhagwanji Shah’s lasting banking legacy

Founded by Suresh Bhagwanji Shah in 1974, I&M Group has grown into a major banking force in East Africa, operating in Kenya, Tanzania, and Rwanda, with a joint venture in Mauritius. The bank is expanding further into key economic hubs, using innovation to strengthen its position and reshape Kenya’s financial sector.

Shah, who played a key role in shaping I&M into a top-performing financial group, holds a 10.98% stake in the lender, equivalent to 178.5 million shares. The Proparco-I&M Bank Rwanda partnership aligns with the European Union’s Global Gateway strategy, which seeks to mobilize investment into sustainable infrastructure, financial inclusion, climate resilience, and economic development across Africa.